2018.02.2523:24:00UTC+00Germany Economic Growth Accelerates in 2017

Buoyant export sales were behind the strong end to 2017 for the German economy, according to the country's statistics office. The solid momentum from the fourth quarter is widely expected to carry over into the beginning of this year.

The Federal Statistics Office (Destatis) confirmed that the German economy expanded by 0.6 percent in the between the third and final quarter of 2017, down slightly from 0.7 percent for the previous three month period. The data, which confirmed a preliminary reading, reveals that the German economy ended 2017 on a solid footing.

The flourishing economy helped the overall state budget surplus to reach 36.6 billion euros ($45.07 billion) in 2017 -- its highest since reunification in 1990, the data showed.

According to the Federal Statistics Office, exports increased by 2.7 percent over the period, versus a two percent rise in imports. Net trade contributed 0.5 percentage points to expansion.

Private consumption, which has been a key pillar of support in recent years, was stagnant -- as was gross capital investment. Neither made any contribution to growth.

Government spending rose, adding 0.1 percentage points to growth.

Germany is one of the world's leading trading nations. Strong exports have helped raise the jobs market and unemployment is currently at a post reunification low in the eurozone's largest economy.

In a sign that household spending could accelerate in the first quarter, consumer morale is at its highest since 2001, with Germans benefiting from record-high employment, strong job security, rising real wages and low borrowing costs.

The outlook is rosy according to Germany's central bank, the Bundesbank. It expects the economy to grow by a calendar-adjusted 2.5 percent this year -- the strongest rate of expansion since 2011.